Earlier this spring, Wells Fargo Advisors began counting money market funds toward a 25 percent limit on cash holdings in advisory accounts in several wrap fee programs.
Under the new policy, customer accounts can be above the limit for a maximum of six months. A veteran advisor told AdvisorHub, that it appears that advisors will no longer receive a payout on "cash-heavy accounts."
The policy changes allow the firm to align its risk management program and guidelines with other areas throughout the Wells Fargo Enterprise, according to the company. The goal is to mitigate risk and match standard practices at other firms.
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